Author: Regents Capital

All entrepreneurs have heard of the grim consensus: more than half of all businesses fail during the first year. Even if we acknowledge the more accurate estimates (about 20% fail within the first two years, according to the Bureau of Labor Statistics), the fact remains that the risk for failure is high for startups and new businesses.

When a business urgently needs funds to pay suppliers and overhead costs, and they aren’t generating enough money yet on their own, owners may have to apply for a working capital loan.

Banks: The Common Choice for Business Loans

Banks may be the first place people consider when they need working capital loans. It makes sense: banks have more reserves and can easily finance a considerable sum for a business if it grants its application.

Unfortunately, this privilege comes with many strings. Bank financing has several pain points, which many business owners don’t want to deal with, or maybe do not even know about.

The Downsides to Bank Loans

We have talked to many entrepreneurs and companies in our years of providing business financing solutions, and many of them have shared their woes regarding bank loans. The following are some of the reasons they opted to seek financing from Regents Capital Corporation instead.

1. It’s Difficult for Many to Qualify for Business Loans

Banks look at the viability of a business and only grant loans to those with a track record of profitability. If they’re not looking at whether a business can pay back what it borrowed, they’re looking at the collateral.

2. Banks Ask for Interest Rates That Are Too High

When utilizing a bank loan, borrowers will be saddled with high-interest rates that practically offset the funding they receive. In many cases, businesses get approved for loans that are insufficient for their needs. Apart from working hard to earn enough for their monthly loan payments, business owners need to find funding for expenses they can’t cover with their loan.

3. Bank Loans Can Have Regrettable Covenants

Many entrepreneurs sign loan agreements without fully understanding the contents, especially covenant clauses. This has led to many unfortunate outcomes, like being forced to use their own homes as collateral through a second or third mortgage, or giving banks the right to claim payments from spouses’ discretionary incomes if the business doesn’t have enough cash flow to support the loan.

Choose a Working Capital Lender Who Will Help You Find the Best Loan for Your Business

Working capital loans are useful for short-term financing needs. However, if circumstances arise that make your business lose steam, these loans can become a burden.

You can avoid the trouble that comes with working capital loans from big banks by applying through non-bank financial institutions instead. Here at Regents Capital Corporation, we can offer low, fixed interest rates, higher ROA opportunities, and help you preserve liquidity and lines of credit.

Explore the financing solutions available to you at Regents Capital Corporation – inquire today.

The cost of acquiring brand-new medical equipment is often too great for medical institutions to shoulder, even with financing options for direct purchases. Fortunately, there is a sound alternative for small hospitals and practices that need medical equipment but have limited capital resources and cannot afford to buy them: healthcare equipment leasing.

Buying equipment offers benefits like warranty privileges, post-sales services, access to new technology, and insurance claims perks. But while it is understandable for an institution to aim for equipment ownership, there are situations when renting is the wiser choice.

Here are a few of the times when renting might just benefit medical practices and hospitals more:

When Hospitals Want to Raise the Quality of Their Healthcare Services with New Equipment but Have a Limited Budget

Hospitals are duty-bound to provide the best possible services to their patients. Part of that responsibility is to obtain modern, high-quality, and high-performing medical equipment.

The accuracy of diagnostic tests, timely discovery of results, and efficacy of the treatment are highly dependent on the reliability of medical tools and equipment, after all. If hospital revenues are insufficient and financing is still an expensive option, leasing is the best answer.

When Hospitals Need to Modernize & Take Advantage of the Latest Medical Equipment Technology While Keeping Costs Low

The upfront costs for medical equipment leasing are significantly less than the lump sum payment required for new equipment acquisitions. Monthly rental fees are also lower than loan repayment rates for direct-purchase medical equipment financing.

Moreover, renting saves practices and small hospitals from the double burden of paying for the maintenance and other scheduled services while paying off the equipment itself. Leasing is, therefore, more feasible if hospitals need to manage their cash flows and allocate liquid resources over a broad scope of needs (e.g., utilities, salaries, supplies, and operational costs).

When Hospitals Want to Protect Their Financial Health from Potential Losses by Upgrading Old & Obsolete Medical Equipment

Medical technology evolves, and its pace keeps getting faster. A brand-new piece of equipment today could be considered outdated in just two or three years. If a hospital buys it, the institution may be forced to maximize and keep using the equipment even though newer and more efficient versions are available, which, in effect, can also limit the medical personnel’s ability to provide top-notch healthcare services.

However, when your leased equipment begins to deteriorate or if new technology becomes available, hospitals can switch to newer equipment without suffering massive financial losses through their medical equipment leasing.

When Hospitals Need the Flexibility to Grow & Improve Their Practice & Their Medical Equipment Over Time

The affordability of leasing equipment and paying only for the duration of their use makes it easier for hospitals to scale and upgrade according to their need and financial capacity. This can help bottom lines, clients care, and credit availability all while helping practices grow and succeed.

When Hospitals Aim to Own Medical Equipment at a More Affordable or Staggered Payment Plan

This is one of the perks that lessors offer to customers in the medical field and a benefit that medical institutions can take advantage of. There are diagnostic and testing equipment, for example, with mature technologies or are ingrained in standardized workflows that it is unlikely for hospitals to change them soon.

Once the terms of the lease are fulfilled (e.g., the institution has rented the equipment for x number of years without violating agreement rules), the hospital can gain full ownership and reap the returns on their investment.

Regents Capital is Here for Your Medical Equipment Needs

These scenarios are all good reasons to lease medical equipment instead of purchasing them. If you need more information to support your medical practices’ financial decision on leasing or owning, Regents Capital would be happy to help!

Get in touch with our team and find out how our services can benefit your institution today!

In the last few months, consumer behavior has changed to adapt to the new normal. According to reports, global e-commerce has grown by nearly 20%. Although this is good news for online retailers, it also presents a new set of challenges.

As demand continues to grow, business owners are faced with the task of keeping up. It can be difficult for those who don’t have the resources. But finding the capital to invest in new equipment, more manpower, and other solutions is a problem in itself.

Discover how a financing plan can help you fulfill your logistics needs without creating additional expenses for your business.

What is Capital Equipment Financing in Logistics?

Capital financing in logistics is often concerned with equipment. Business owners choose to get equipment financing to acquire the capital necessary to purchase new equipment when new needs arise in their industry – like a move to online orders and delivery. The equipment then becomes the collateral for the loan. And you can freely access and use the equipment as long as you keep up with the loan payments.

What Are Growth Opportunities?

Capital equipment financing has become popular because of the advantages it offers, such as:

Increase Working Capital

With a financial plan in place, you reduce upfront costs for new equipment. It allows you to increase your working capital and redirect it to other operating expenses or income-generating activities. Alternatively, you can use it to compensate for cash flow shortages or other emergency expenses.

Utilize New Equipment

Take advantage of the latest technology available. One of the reasons businesses hesitate to upgrade their technology is the sheer cost. When you purchase new equipment, you’ll likely hold off spending on other essential aspects of your business. With an equipment financing plan, you don’t have to empty your current operations budget to acquire the piece of equipment.

Enjoy Tax Benefits

In capital equipment financing, the payments you make to your lender are divided into two categories. These are the principal and the interest. The latter can be tax-deductible. Also, you have the option to file the entire payment as a business expense, allowing you to deduct your lease payments from your annual tax reports.

Free Up Lines of Credit

Instead of applying for loans to fund new purchases, you can use equipment financing plans. Doing so frees up your credit lines for other concerns. If you run into a working capital shortage, you have credit lines available to apply for a business loan. An equipment financing plan helps you solve the problem without affecting other areas of your business.

Regents Capital: Your Equipment Financing Partner

Industry experts agree that demand is growing for better logistics and supply chain management in these uncertain times. Preparing for it by acquiring the necessary financing plans helps you create growth opportunities for your business.

Regents Capital Corporation can be your commercial equipment financing partner in getting your business ready for expansion.

Talk to our team to find out more about our financing products.

The COVID-19 pandemic forced governments to establish community lockdowns, which stalled economies and halted the flow of people and goods. These travel restrictions and stay-at-home orders have left many businesses counting costs as their sales dwindled because of the lack of customers.

Still, some businesses remain immune to the virus, and others are even uniquely profiting from the COVID-19 quarantine. Not surprisingly, food businesses are among the brands that saw an exceptional sales boost during the pandemic.

Below are some food brands that continue to thrive in this situation.

1. DoorDash

Food delivery services became the lifeline of many consumers during the lockdown since they can’t go out to dine or buy their groceries. Grubhub and Uber Eats each had a spike in their sales, but DoorDash saw a much bigger growth than its competitors. DoorDash scored 45 percent of third-party delivery orders, followed by Uber Eats and Grubhub at 28 percent and 17 percent, respectively.

Because of its growth during the pandemic, DoorDash managed to raise an additional $400 million in equity financing. It can help the brand future-proof the business and ensure its success even after the coronavirus.

2. Domino’s

A Bloomberg article revealed that old restaurant chains are seeing a revival, thanks to quarantined consumers. Revived food chains include pizza brands, such as Domino’s.

Domino’s has long been known for innovating its pizza delivery service, so it’s no surprise that the brand played to this strength when the pandemic hit. The chain’s fast, reliable, and contactless delivery service, along with the massive U.S. pizza consumption during the pandemic, gave Domino’s higher-than-expected earnings during Q2.

Papa John’s, a long-time rival of Domino’s, also saw a surge in sales.

3. Wingstop

Chicken wing chains were also revived, along with pizza restaurants. Wingstop, which has over 1,400 locations across the country, focused on improving its online ordering and delivery functions to fit the demands of the new normal. As such, the brand’s systemwide sales jumped by 37% to $509 million in the second quarter.

Wingstop expects to open 120 to 123 new locations within the year, a strong proof of their growth despite the outbreak.

4. HelloFresh

Meal kit companies HelloFresh and Blue Apron experienced sales spikes. However, HelloFresh’s gains are much bigger than Blue Apron’s, which were described as “meager at best” by The Motley Fool.

Apart from the quarantine, HelloFresh’s growth can be attributed to consumers’ increasing demand for healthier but convenient food options. The coronavirus has forced people to be more conscious of their eating habits. Many consumers now prefer food items with high nutritional value but are still affordable and accessible.

Luckily, the business model of HelloFresh addressed this market gap perfectly, which led to its rapid growth in 2020.

5. Campbell

Finally, Campbell is another familiar brand that thrived amid a widespread public health crisis. The demand for ready-to-eat food products increased during the pandemic, which spelled good news for the decades-old soup brand. As such, Campbell reported a 35 percent rise in U.S. soup sales from February to April.

People are also looking for nostalgic brands and comfort food items during these trying times, contributing to Campbell’s growth.

Ultimately, the key to overcoming the challenges of COVID-19 is to analyze the changes it brought to consumer behavior. Then, determine how to address these changes best using your value proposition. Make the necessary adjustments, whether offering delivery services or integrating new technologies into your business model.

Commercial Equipment Financing Firm

Regents Capital is your financing partner, not just your provider, in securing commercial equipment, including foodservice and restaurant equipment and software. We help you overcome financial challenges when raising and acquiring capital for your equipment requirements during the economic recession.

View our videos, browse our site, or send us an email to learn more about our services.

Acquiring new equipment to start your small business can be very expensive. However, thanks to equipment leasing companies, entrepreneurs have an easier time turning their visions into reality.

Equipment leasing essentially refers to a business renting the equipment they need from a provider. Like equipment financing, it’s an ideal method for small businesses to get started. According to the Equipment Leasing Association, approximately 80 percent of businesses in America lease their capital equipment. Even hospitals and healthcare providers lease their medical equipment.

Find out how this can help your small business, what challenges you can expect and some important questions you need to address when leasing equipment.

Benefits to Equipment Leasing

The following are the main benefits of equipment leasing for small businesses. But these benefits are only the tip of the iceberg – as there are many more depending on your industry and needs.

• No Down Payment

Small businesses can run into cash problems early on because they much of their money on equipment down payments. Oftentimes, equipment leasing has no such requirement, allowing you to spend your resources on other things that your business needs.

• More Credit

You may be considering taking out a loan specifically to purchase equipment, but these can take up a lot of your available credit. Equipment leasing is not a loan and can be taken down as a business expense on your taxes. This means you can spend your credit on other endeavors.

• Easy Upgrading

Another downside of buying equipment is that it can quickly become obsolete, leaving you with a burden rather than an advantage. With equipment leases, you switch to more updated equipment at the end of the lease without spending more money on outdated machinery.

Challenges to Equipment Leasing

Equipment leasing does come with a few responsibilities to keep in mind, notably the following:

• Leasing Periods

Depending on the terms of your lease, you can use the equipment for months or even years. This can be a problem if your small business is in a highly competitive and quickly evolving field. Negotiate the terms of your lease with the provider if you think this could become a problem so you don’t get stuck with outdated equipment.

• Longer Payments

Equipment leasing can be affordable when you look at it on a monthly basis, but the cumulative amount you spend could be higher than if you paid for the equipment outright.

Important Considerations for Equipment Leasing

Before you sign an equipment leasing contract, here are a few important things you need to examine.

• What’s Your Industry Like?

Depending on your industry, the most efficient equipment for your business can change quickly. Purchasing quickly outdated equipment can be a costly blunder, which means leasing is your best option.

• How Small is Your Company?

If your small business only needs a single computer or one piece of machinery, you may be better off buying it. Leasing is the better option if you need more than one piece of hardware and your resources are stretched enough already.

• Will You Purchase the Equipment at the End?

Some leasing contracts allow you to purchase the machinery at the end of the term. If your small business works in a field that doesn’t change its equipment quickly, this is a good move for securing reliable machinery.

Equipment leasing is just one way you can streamline the operations of your small business. Another way you can do so is by partnering with a reliable equipment financing firm, so you can purchase machinery easily.

Experienced Financial Partner

Regents Capital fast-growing independent company focusing on equipment financing for a wide range of businesses. Thanks to their savvy business practices and great company culture, Regents Capital has experienced an average year-over-year growth of 35 percent.

Contact us today and form a reliable partnership to help your business grow!

Even if a business has enough cash reserves to fully pay for needed equipment, it’s often a wiser decision to seek financing solutions and dedicate the cash flow to other pressing areas. In 2018, nearly eight out of ten businesses used at least one form of financing (including leases and loans) to acquire software and equipment.

A staggered payment or a lease agreement makes better sense for many businesses, as it gives them greater leeway to manage their financial resources.

The construction industry is no stranger to these financing methods because it relies heavily on large and small equipment. In response to these needs, finance companies make sure that construction companies are spoiled for choice when it comes to financing agreements.

Expenditure of the Construction Industry
The construction industry sees massive spending; the U.S. Census Bureau reports, during the first six months of 2019, construction spending amounted to about $615.8 billion. Even though figures dropped by 0.5 percent compared to the same period in the previous year, it is still a staggering amount.

Many non-residential construction sectors saw an increase in spending from 2018-2019, according to Fails Management Institute.

Public Safety Construction increased by $10 billion (8 percent)
Transportation Construction increased by $55 billion (7 percent)
Lodging Construction increased by $33 billion (6 percent)
Office Construction increased by $79 billion (6 percent)
A huge chunk of this expenditure can be attributed to equipment purchases. According to the Equipment Leasing and Finance Association (ELFA), construction equipment accounts for 13.9 percent of equipment financing in the USA in 2018. This represents an increase from the previous year’s figures (12.7 percent).

Reasons for Financial Solutions
With massive construction spending, companies are turning to financial solutions to maximize their resources and expand their bottom line.

Some of the most powerful reasons to adopt financing are:

Capital Preservation
Investing in large capital expenditures (such as purchasing heavy-duty construction equipment) entails huge financial risks. For smaller companies, this is not a risk worth taking. Financing mitigates this risk; it eases the worry that the new equipment may not yield the desired increase in efficiency and return on investment.

Better Expense Planning
In the face of budget fluctuations, financing evens out expense planning. Paying for a new piece of equipment is a big financial move, which may not be an easy decision for companies with smaller cash reserves. Financing equipment helps maintain cash flow and greater certainty in budgeting by setting customized lease payments to match cash flow.

Managed Obsolescence
Some construction equipment falls into obsolescence quickly, and financing eliminates the risk of owning obsolete equipment. It is a more attractive choice than investing a huge amount of resources on an item that loses its serviceability a few years down the road.

Construction equipment financing plays an integral role in the financial planning of companies, and they have countless choices when seeking funding for their equipment.

Finding Financing Solutions for You
Regents Capital Corporation provides reliable, innovative solutions for construction firms. From loans and leases, we offer financing for different needs. With a combined 100 years of experience and $150 million in finance transactions processed, expect solutions tailored to your business.

We’ll fund your growth, so you can continue building the economy. Talk to our representative today.

Like any business, construction companies need steady cash flow to support your operational needs and expansion plans. This funding allows you to upgrade your equipment and improve your processes.

But acquiring the funds your business needs isn’t as easy as it sounds, especially where heavy equipment financing is concerned.

What are the Most Pressing Financing Concerns of Contractors?

Unfortunately, the coronavirus pandemic put a stop to many construction projects, resulting in lower profits for at least a few months.

What type of financing concerns are most common for contractors today?

1. Finding Resources for New Equipment

A contractor’s success lies in the power of their heavy equipment. Old excavators need an upgrade. And if you are winning bigger projects, then it makes sense to switch to heavier-duty compactors and bulldozers. But this type of equipment can be costly.

2. Needing New Vans or Trucks

Another common finance-related concern is the need for new company vehicles, whether it’s a car used by the project manager or a truck that transports equipment to and from the site. Contractors may be delaying this need until they get proper funding.

3. Shouldering Late Payments

Finance concerns aren’t always internal. If the arrangement with a client involves periodic payments, there’s always the probability of payment delays. Contractors can’t always wait for those accounts receivable to continue with the project.

All these finance-related concerns can lead to project delays and late completion. These delays are likely to have a negative effect on a contractor’s relationship with clients and consultants.

Don’t let financial restraints cause client dissatisfaction with your work.

How Do Contractors Address Heavy Equipment Funding Concerns?

The main funding-related concerns of contractors often revolve around lack of capital and the long wait for accounts receivable to come in. Getting the capital you need can be a challenge if you are uncertain about what type of funding to apply for.

Explore some of the most favorable options:

1. Equipment Financing Line of Credit

This type of financing is specially designed for contractors and other business owners who need funds for new equipment. The line of credit provides a fixed period of time where you can make equipment acquisitions. With it, you can combine multiple invoices into one financing agreement.

2. 100% Reimbursement Agreement

There will always be bigger and better equipment to make your construction work more efficient. If you choose to have a 100 percent reimbursement agreement with a lender, you can monetize the equity of any equipment you purchased within a specific period.

3. Working Capital Loans

Equipment financing isn’t the only concern of contractors. Consider taking a working capital loan if your financial concerns are related to other business expenses, like payroll and debt payments. You can also use this type of loan to cover unexpected losses.

Financing Solutions for Every Business Challenge

Regents Capital knows the different financing concerns that could be holding you back. We work alongside you to help you overcome financing challenges and secure the heavy equipment capital you need to move forward.

Maximize our team’s expertise today. Call us at 888.901.4207.